CBDCs are a declaration of war on the banking system says economist
Richard Werner discusses the challenges of decentralization and the role of blockchain in it in an exclusive interview with Cointelegraph.
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CBDCs are a declaration of war on the banking system, Richard Werner – a development economist and professor at De Montfort University – told Cointelegraph during the Web Summit on November 4.
Known for his theory of quantitative easing, published nearly 30 years ago, Werner is an advocate of a decentralized economy. In an exclusive interview with Cointelegraph Editor-in-Chief Kristina Lucrezia Cornèr, he discussed the challenges surrounding decentralization, the role of central banks, and how blockchain can help promote transparency in economies. p>
This interview was part of Cointelegraph's extensive coverage at the Web Summit in Lisbon - one of the world's leading technology conferences.
Cointelegraph: Do you think a decentralized financial system is actually possible?
Richard Werner: Yes, because of course we have a lot of centralization forces by the central players. They love it, and they want more centralization, but it's very dangerous and very bad. The extreme case is the Soviet Union, through key periods, which was a very centralized monetary system with only one central bank, and it was not a good system. But that's what central planners in other countries like the ECB [European Central Bank], that's what they want.
The ECB says there are too many banks in Europe. Why is that? And who are they to say that? Well, they wish it was just them. They don't want competition. They want to go back to the central bank, the only central bank. So that's where issuing CBDCs comes in because through CBDCs central planners think it's a declaration of war on the banking system. The CBDC is literally the central bank that says we are going to open current accounts, ordinary banking services for the ordinary public at the central bank. In other words, the banking regulator suddenly says we're going to compete with the banks now because the banks don't have a c...
Richard Werner discusses the challenges of decentralization and the role of blockchain in it in an exclusive interview with Cointelegraph.
New
CBDCs are a declaration of war on the banking system, Richard Werner – a development economist and professor at De Montfort University – told Cointelegraph during the Web Summit on November 4.
Known for his theory of quantitative easing, published nearly 30 years ago, Werner is an advocate of a decentralized economy. In an exclusive interview with Cointelegraph Editor-in-Chief Kristina Lucrezia Cornèr, he discussed the challenges surrounding decentralization, the role of central banks, and how blockchain can help promote transparency in economies. p>
This interview was part of Cointelegraph's extensive coverage at the Web Summit in Lisbon - one of the world's leading technology conferences.
Cointelegraph: Do you think a decentralized financial system is actually possible?
Richard Werner: Yes, because of course we have a lot of centralization forces by the central players. They love it, and they want more centralization, but it's very dangerous and very bad. The extreme case is the Soviet Union, through key periods, which was a very centralized monetary system with only one central bank, and it was not a good system. But that's what central planners in other countries like the ECB [European Central Bank], that's what they want.
The ECB says there are too many banks in Europe. Why is that? And who are they to say that? Well, they wish it was just them. They don't want competition. They want to go back to the central bank, the only central bank. So that's where issuing CBDCs comes in because through CBDCs central planners think it's a declaration of war on the banking system. The CBDC is literally the central bank that says we are going to open current accounts, ordinary banking services for the ordinary public at the central bank. In other words, the banking regulator suddenly says we're going to compete with the banks now because the banks don't have a c...
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